Chairman Kim Sun-kyu of Korea Housing Guarantee Corp. speaks at the International 

Seminar on Development of Housing Guarantee System 

held on Nov. 13-14 at KHG head office in Seoul.

Korea Housing Guarantee Corp. (KHG) has issued housing guarantees worth 4.11 trillion won as of the third quarter this year, up 14 percent YoY, with total guarantees outstanding coming to 117.108 trillion won. Housing guarantees account for 90.04 trillion won followed by house purchase guarantee money taking up 10.904 trillion won and other guarantees at 10.554 trillion won as of the end of September.

The company has been providing six guarantee products all to back up government housing policies such as the guarantee for repayment of leasing money and the mortgage guarantee against houses or apartments being built for the construction of the residential houses.

Since September, the company has also been issuing guarantees for bank loans taken out by construction companies against their unsold houses to control the housing supply in accordance with the Capital Area Housing Demand and Supply Control Measures set up on July 24.

Chairman Kim Sun-kyu is with the Vietnamese Vice Minister of the Construction Ministry following the 

Vietnamese official’s visit to learn the KHG’s housing guarantee system on Aug. 27, 2013, at the KHG head office

The company has also been managing the guarantees against the housing purchase funds for houses on lease, the issuance of guarantees for project financing on rental houses, and guarantees for rental payments from May to September.

The Leasing Money Repayment Guarantees issued totaled 81.6 billion won, covering 482 leased houses since September when the facility was launched, and the Mortgage Guarantee totaled 154.5 billion won, covering 461 houses and apartments since September when the facility was introduced, bringing the new guarantee products issued to 237.1 billion won.

The KHG has been at work to strengthen the new types of housing guarantees introduced since 2012 to help stabilize the residential housing market for the general public. The new housing guarantees issued since 2012 came to 12.54 trillion won, up 94 percent YoY, with the majority in the area of the housing purchase fund guarantee issued totaling 10.424 trillion won, up 99 percent YoY, while the issuance of the guarantee for general public housing construction is up 12,465 percent YoY at 536 billion won.

Chairman Kim Sun-kyu works on a wall of 

a house during the company’s social service recent

 outing along with a staff.

The company has taken a number of measures to strengthen the rights of the general public in their guarantees. The company lengthened the application period for the house leasing fund guarantee this past May. At the same time, the company also broadened the responsible areas for housing allocation guarantees by including pre-payment guarantees at the sites that manage allocation payment money by the company.

The company also took measures to relax the requirements for getting the lease money guarantee by allowing people who have previously defaulted on the national housing basic fund, those who delayed the payment of guarantee fees, and those who missed paying local and national taxes to get the guarantees.

The company also took measures to cut the fees for the issuance of guarantees to lessen the expenses for financially-poor house buyers or lessees and housing businesses.

In May, the company also reduced the fees for guarantees to reduce the burden on housing builders to spur the housing market, which has been in slump this year.